Justin Sun alleges World Liberty withheld foreign ownership details before using its UAE citizenship to challenge the jurisdiction of an American federal court.
Justin Sun accused the President Donald Trump-backed crypto firm World Liberty Financial of concealing UAE citizenship to escape his federal lawsuit.
The Tron founder said on Nov. 3 that his lawyers had requested sanctions against World Liberty Financial and its attorneys after the company disclosed foreign ownership connections months into litigation over his $45 million investment.
The disclosure introduced another controversy surrounding the president's cryptocurrency business, which has promoted itself as an American financial venture despite a reported $500 million investment from an Abu Dhabi-backed entity tied to a senior UAE government official.
Sun accused World Liberty of selectively invoking its national identity depending on whether it was raising money or defending itself in court.
“World Liberty was proudly American when it was selling tokens. It discovered its UAE roots only when it needed a way out of an American federal courtroom.”
The accusation followed an August court filing in which World Liberty expanded its ownership disclosure from one entity to 22, identifying citizenship in Florida, Delaware, Puerto Rico and the UAE.
Sun alleged the company initially disclosed only Florida citizenship, despite rules requiring it to identify the members of its ownership structure.
The revised filing came six days after an Aug. 20 hearing over World Liberty's attempt to move the investor dispute into arbitration. Sun said the judge had indicated that certain claims should remain in open court, while others could proceed through arbitration.
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